Moody's rates eircom notes B2, loans Ba3, B2

Moody's Investors Service said it assigned provisional ratings to the proposed borrowings of eircom Group plc's leveraged buyout financing vehicles BCM Ireland Holdings Ltd. and BCM Ireland Finance Ltd.

Moody's assigned a prospective Ba3 corporate family rating to BCM Ireland Finance and a prospective B2 to its senior unsecured notes due 2016. For BCM Ireland Holdings, Moody's assigned a prospective Ba3 to its senior secured credit facilities and a prospective B2 to its second-lien loan.

The outlook is stable.

Proceeds from the newly issued bank and bond debt will be used to redeem all of eircom's net financial debt, including the ?1.4 billion senior secured credit facilities, the ?550 million 7¼% senior notes due 2013 issued by Valentia Telecommunications Unlimited and the ?285 million 8¼% senior subordinated notes due 2013 and the ?$250 million 8¼% senior subordinated notes due 2013 issued by eircom Funding plc.

Moody's said the ratings reflect eircom's high initial leverage following its leveraged buyout by a group of financial investors (around 5.9 times debt to EBITDA) and ongoing regulatory and competitive risks.

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